InsCorp Quarterly Profits Reflect Benefits of Balance Sheet Strategies

Nashville-based Lender Increases Semi-Annual Dividend 25%

NASHVILLE, Tenn., May 3, 2022 /PRNewswire/ — InsCorp, parent company to INSBANK (OTCQX:IBTN) today reported first quarter earnings of $3,204,000, or $1.12 per share, an increase of 149% over the prior year same quarter. At the bank level, net interest income was $5,078,000, representing a 15% increase over the prior year. Pre-tax income from operations was $1,973,000, an increase of $489,000 over Q1 2021. In addition to income from operations, realized and unrealized gains on interest rate caps of $1,887,000, net of tax, were a driver of earnings, which was a record for the company in a single quarter.

“During the pandemic we executed hedging strategies to protect margin from further volatility during 2021 as we re-priced maturing deposits,” said Jim Rieniets, President and CEO of INSBANK. “Fortunately those liabilities re-priced before recent volatility witnessed during the first quarter of this year, which resulted in an opportunity to enhance our capital base with gains on those interest rate caps,” Rieniets continued. 

Core deposits grew by $27,000,000 during the quarter to $511,000,000, while core loans (excluding Paycheck Protection Program loans) grew $4,500,000. Total new loan commitments closed during the quarter were roughly $40,000,000, while funding under those commitments was approximately $25,000,000.  Net loan growth was impacted by payoffs primarily from clients selling commercial real estate and other assets. “While net loan growth was ultimately lighter than expected, our loan pipeline both extended and grew during the quarter,” said Rieniets. “Activity in our market remains very vibrant and our team is busy managing the pipeline of opportunities before us, both in our core commercial banking unit as well as our Medquity healthcare silos,” Rieniets continued.    

The board of directors also recently approved the payment of a semi-annual dividend. InsCorp shareholders of record as of May 20, 2022, will receive a $0.15 dividend payable on June 10, 2022. This is an increase of 25% over the company’s most recent semi-annual dividends. “With the trajectory of earnings our team has established, we’re pleased to be able to further enhance our shareholders’ total return with an increase in the dividend,” said Michael Qualls, Chairman of InsCorp.  

Highlights of the quarter and year-over-year include

  • Total assets grew $88 million or 13.9% as of March 31, 2022 compared to March, 31 2021.
  • Non-interest bearing deposits grew $11.3 million or 15.6% during the 12 months ended March 31, 2022.
  • Deferred loan fees related to the PPP loans is approximately $185,000 on March 31, 2022.
  • Non-Interest Expense to Total Average Assets was 1.79% for the quarter ended March 31, 2022, slightly higher than 1.70% for the same period in 2021 and compared favorably to the bank’s FDIC peer group average of 2.32%.
  • Cost of all interest-bearing funding was 0.69% for the three months ended March 31, 2022 decreasing from 1.33% for the same period in 2021.
  • Assets per employee remained strong at $15.05 million, compared to the FDIC peer group of $6.91 million.
  • The bank’s tier 1 capital ratio was 12.27%, while total risk-based capital was 13.52%.
  • The allowance for loan and lease losses was 1.50% exclusive of PPP loan balances.
  • Earnings per share for the first quarter of 2022 was $1.12.
  • Tangible book value increased to $19.89 on March 31, 2022 from $17.69 at March 31, 2021.
  • The percentage of loans past due and non-accrual to gross loans was 0.47% comparing favorably to peer of 0.76%.
  • There were $23,000 in net recoveries for the quarter ended March 31, 2022.
  • Accumulated Other Comprehensive Income (AOCI) reflected a loss on the securities portfolio offset by gains on interest rate swaps held by the bank for interest rate risk purposes, resulting in a 0.9% decrease in AOCI for the three months ended March 31, 2022.

About INSBANK

Since 2000, INSBANK has offered its clients highly personalized service provided by experienced relationship managers, while positioning itself as an innovator, utilizing technologies to deliver those services efficiently and conveniently.  In addition to its commercial focused operation, INSBANK operates three divisions, Medquity, TMA Medical Banking and INSBANK Online.  Medquity offers healthcare banking solutions to individuals nationwide, whether they are still in residency, practicing or entering retirement, while TMA Medical Banking provides banking services specifically to members of the Tennessee Medical Association. INSBANK Online offers nationally available virtual private client services for interest bearing deposits.  INSBANK is owned by InsCorp, Inc., a Tennessee bank holding company. The bank is headquartered in Nashville at 2106 Crestmoor Road, and has an office in Brentwood at 5614 Franklin Pike Circle. For more information, please visit www.insbank.com

InsCorp, Inc.

Consolidated Balance Sheets

(000’s)

(unaudited)
















March 31,


December 31,


March 31,






2022


2021


2021

Assets









Cash and Cash Equivalents


$                            17,258


$                              16,680


$                            15,561

Interest Bearing Deposits



90,288


73,746


32,268

Securities




27,545


21,606


12,747











Loans




552,473


551,463


543,178

  Allowance for Loan Losses


(8,193)


(8,025)


(7,515)

Net Loans




544,280


543,438


535,663











Premises and Equipment, net


13,275


13,345


13,519

Bank Owned Life Insurance


13,477


13,398


10,176

Restricted Equity Securities


9,225


9,054


8,147

Goodwill and Related Intangibles, net


1,091


1,091


1,091

Other Assets




8,490


8,247


7,549











  Total Assets




$                          724,929


$                            700,605


$                          636,721











Liabilities and Shareholders’ Equity






Liabilities









  Deposits










Non-interest-bearing



$                            84,190


$                              79,929


$                            72,858


Interest-bearing



529,316


504,781


432,295


Total Deposits



613,506


584,710


505,153











  Federal Home Loan Bank     Advances


30,000


32,000


45,000

  Paycheck Protection Program Liquidity Fund

322


1,404


15,485

  Subordinated Debentures



17,500


17,500


15,000

  Federal Funds Purchased



4,000


  Notes Payable



2,500


2,500


  Other Liabilities



2,885


3,278


3,117

Total Liabilities




666,713


645,392


583,755











Shareholders’ Equity









Common Stock



32,241


32,087


31,325


Treasury Stock



(3,150)


(3,150)


(681)


Accumulated Retained Earnings


28,543


25,689


21,652


Accumulated Other Comprehensive Income

582


587


670


Total Stockholders’ Equity


58,216


55,213


52,966

Total Liabilities & Shareholders’ Equity

$                          724,929


$                            700,605


$                          636,721











Tangible Book Value



$                              19.89


$                                18.90


$                              17.69

InsCorp, Inc.

Consolidated Statements of Income

(000’s)

(Unaudited)
















Three Months Ended


Twelve Months Ended


Three Months Ended






March 31, 2022


December 31, 2021


March 31, 2021











Interest Income



$                              6,013


$                              24,901


$                              5,876

Interest Expense



935


4,690


1,431

Net Interest Income



5,078


20,211


4,445

Provision for Loan Losses



145


1,850


650

Non-Interest Income









Service Charges on Deposit Accounts

57


240


59


Bank Owned Life Insurance


79


283


60


Gain on Security Sales



62


62


Other




221


1,114


237

Non-Interest Expense









Salaries and Benefits


2,035


7,332


1,654


Occupancy and equipment


433


1,347


325


Data Processing



154


597


147


Marketing and Advertising


128


574


100


Other




567


2,373


503

Net income from Operations


1,973


7,837


1,484











Gain in Interest Rate Hedges


2,516


748


443

Interest Expense-Subordinated Debt

233


992


239

Income Before Income Taxes


4,256


7,593


1,688

Income Tax Expense



(1,052)


(1,564)


(398)

Net Income




$                              3,204


$                                6,029


$                              1,290











Return on Weighted Average Common Shares

$                                 1.12


$                                   2.06


$                                 0.44

SOURCE INSBANK

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